Tag Archive for: early stage startups

3 Things Startups Focus On as VC Funding Shifts

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Key Takeaways

  • Focus and Efficiency: Startups should streamline their efforts and budget by identifying and eliminating underperforming activities. This allows for a sharper focus on core competencies and can lead to improved operational efficiencies, often through outsourcing non-essential functions.
  • Future-Driven Innovation: Despite economic uncertainty, there are still opportunities for investment in sectors poised for growth, such as FinTech, CleanTech, and health-related industries. Startups should align their strategies with long-term trends and emerging challenges to attract funding and demonstrate future relevance.
  • Preparation for Success: Companies should prioritize problem-solving and policy engagement, while also enhancing their brand’s trust and credibility. Developing a strong product strategy and preparing for an eventual IPO can position startups favorably for future growth, even amid fluctuating funding environments.

As uncertainty rises, funding falls—or at least that’s what the headlines would have you believe.

But the data tells a more nuanced story.

According to Inc. magazine, seed and angel deals are still trending upward. And early-stage companies with a proven product are still capturing the majority of those deals.

In fact, 64% of venture funding is flowing to early-stage companies. Even more telling: seed deals through Q2 of 2022 were on par with *all* of 2019 (Q2 NVCA/PitchBook).

That means if you’re a hyper-growth startup, an ambitious founder, or a challenger brand, opportunity is still very much on the table.

So what *should* you do when VC funding tightens and inflation keeps uncertainty high?

I’ve worked through every recession since 9/11, partnering with ambitious brands through boom cycles and downturns alike. Over the years, I’ve seen what successful companies consistently do to create competitive advantage, survive uncertainty, and position themselves for growth.

One thing is clear: startups that stay future-focused *and* ruthlessly prioritized tend to come out stronger—whether you’re a consumer brand or a B2B company.

Here’s where smart startups are focusing right now when it comes to VC funding.

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Focus Your Energies and Budget

“Everything you do, do exceptionally well—and if you aren’t exceptional at it, get rid of it or outsource it.”

This is not the time to spread yourself thin.

Audit everything you’re doing and be honest about what’s working—and what isn’t. If your internal business development team is crushing it, but your event marketing isn’t delivering ROI, reallocate that event budget to support what’s already driving growth.

Focus creates leverage.

Outsourcing can also be a powerful advantage right now. It’s more nimble, more flexible, and often more cost-effective. The key is clarity. When you outsource, be crystal clear about your goals so you can maximize a reduced budget.

This kind of focus does more than save money. It clears operational cobwebs and often reveals efficiencies you didn’t see before. Many founders realize that outsourcing key functions—like PR—actually delivers stronger results than keeping everything in-house.

Smart startups also take the long view. Look for ways to deepen efficiency with existing agency partners and get more value from the relationships you already have.

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Bullish on the Future

“Deals are still happening—but they’re happening in industries moving full steam ahead, no matter what the economy does.”

Here’s what hasn’t changed: innovation always moves forward.

VCs know this. They’re not betting on solving yesterday’s problems—they’re betting on who solves tomorrow’s.

According to PitchBook, in Q1 of 2022 alone, VCs raised more capital than in the entirety of 2019. Are we seeing a pullback from the highs of 2021? Absolutely. But the future-focused money is still flowing.

Deals are happening in industries aligned with long-term shifts. That means founders need to clearly articulate where their product fits into the next 5, 10, or 15 years—not just today.

The pandemic surfaced massive, unresolved challenges. Companies solving those problems still have a head start. Your corporate storytelling should lean into that future—and be anchored in purpose-driven initiatives. That’s how brands lead instead of follow.

FinTech is a great example. While funding isn’t as frothy as 2021, through Q2 it still exceeded 2019 levels. Founders in this space should double down on thought leadership tied to purpose-driven points of view to stay aligned with long-term trends.

The cannabis industry has faced disruption, but no one believes it’s disappearing. Growth is expected to accelerate as more states legalize and interstate commerce expands. Many experts predict a $100B market by the end of the decade. One of the best ways to understand where this industry is headed is by studying pitch decks from recently funded startups.

CleanTech is another clear hypergrowth area, fueled in part by the Inflation Reduction Act. While VCs have been burned here before, that makes trust-building absolutely essential for companies raising capital now.

PR for AI companies remains a critical growth lever. While the hype surge around ChatGPT has leveled out, investors still haven’t crowned long-term winners. For AI startups—especially B2B AI companies—PR is one of your most valuable strategic assets right now.

If you’re in a growth category, timing matters. When momentum exists, move.

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Plan for Success

“Companies that survive this period stay relentlessly focused on problem-solving.”

This is the moment to think out loud and plan ahead.

The companies that come out stronger are the ones putting their operations teams to work solving future challenges now. If VC funding isn’t immediately realistic, explore alternatives—like federal and local policy initiatives.

Past infrastructure bills created real opportunities for climate tech and infrastructure startups. Emerging industries like drones and UOVs were able to tap into funding streams many overlooked.

Consumer tech VC funding has dropped sharply. As a result, broad storytelling campaigns may not deliver the same ROI they once did. This is where product-based PR programs can help maintain awareness without inflating budgets.

Mental health remains top of mind, which is why emerging industries like healthtech, cannabis, and psychedelics continue to attract investor interest. Competition is fierce, so brands in these spaces must work harder to build trust and legitimacy with the communities they serve.

Direct-to-consumer (DTC) funding has pulled back dramatically. Today, a DTC strategy is expected—not differentiated. Investors want defensibility. That may mean proprietary technology, or as investor Caitlin Strandberg has noted, a serious Amazon strategy. Buyers are searching and purchasing there first. Align your sales channels with SEO and digital PR so you’re positioned for scalable growth.

Finally, one of the smartest long-term moves you can make right now is laying the groundwork for a successful IPO. Preparing early—internally and externally—saves time, money, and stress later.

This is also the right moment for scenario planning. Crisis readiness matters. Planning now for risks like cyber breaches strengthens your resilience and credibility.

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Tomorrow’s most successful companies won’t let uncertainty slow them down.

This is where strategy matters.
This is where focus makes the difference.

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5 Money Saving Marketing and Branding Tips for Startups

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Key Takeaways

  • Strategic Planning is Crucial: Before launching, startups should develop a comprehensive marketing plan to avoid impulsive spending on flashy but ineffective tactics, ensuring that every marketing effort aligns with their overall strategy.
  • Consult Experts Wisely: Engage knowledgeable marketing professionals who understand your vision, and be cautious of advice from those unfamiliar with your goals. Building a strong relationship with your marketing team can help filter out poor suggestions.
  • Implementation Matters: Consider who will execute marketing initiatives before investing in them. A clear understanding of the logistics and responsibilities involved is essential to avoid wasting resources on poorly planned campaigns.

OK.  I’ll admit it. I watch Silicon Valley on HBO.

I hate admitting it because, of course, it’s both a characterization and just a little too close for comfort to the startup experience.

Last night’s episode had me laughing and crying.

Let me set the scene: The founder and the coders are desperately trying to hire new developers in a competitive market, time is short and so is money.  Meanwhile, in the board room, the newly minted but completely wacko investor insists the startup spend $30K on “schwag.”  It’s a classically stressful startup moment.

I cringe.

No one asks any questions – the founders are too caught off guard by the mere suggestion. And yet, it’s patently obvious no one except the wildly erratic investor, who also spend a load of cash on billboards, has started to even think about marketing and branding.

Everyone’s thinking “splash” and no one is thinking “strategy.”

Here’s a pro-tip: “Splashes” without “Strategy” are usually huge wastes of money.

I don’t care how awesome your product is – you HAVE to think about branding and marketing for your startup. But the worst way to do it is in a scattershot “yah, let’s spend money on that,” way. Every startup has a “Shwag” moment.

I remember one startup I worked on wanted to spend $100K on hiring a talent for a “viral video.” Another spent over five-hundred thousand dollars on print ads.

Both happened for one reason only: everyone was in splash mode and no one was in strategy mode.

Here are 5 Ways To Know Whether It’s YOUR Time for “Schwag”

1. Have you done a pre-launch marketing plan?

Before you go to launch, you’re going to need a marketing plan. Sounds obvious, except, it’s one of the hardest things for startups to focus on.

Through the haze of late nights and Redbull, frantic pivots and resource challenges, marketing strategy for launch is often overlooked.

Consequently, decisions like “we need to spend $30K on “shwag” happen in the moment and they happen quickly and then happen when everyone is actually focused elsewhere.

If there’s one place you need a plan for launch it’s in marketing. If you’re doing your pre-launch homework, you might just be well positioned for your splash.

2. Who’s Suggesting?

I know you wouldn’t take code advice from me. You shouldn’t. If I ever give it you, send me packing.

Get your experts and resources in order and more importantly, listen to them.

There’s going to come a point when someone or many people will start telling you what you should do, most of whom have no idea what you’re TRYING to do.  The better your relationship with your marketing expert, the more you’ll know whether you’re getting good advice from everyone else.

3. Who’s Implementing?

What’s the point of your “shwag?” Whose getting it, when and where. Oh, yah, whose distributing it?

How many times have I seen impetuous spending happen without thought as to implementation?

Chances are – no matter what kind of “shwag” you’re investing in, you, the founder do NOT have time to implement said “shwag.” Better figure that out before you spend that $30K.

Even if you’re a master of marketing strategy, get your implementors together and THEN you’ll be ready for your splash.

4. What Questions Aren’t You Asking?

Hey, I like a new idea probably even more than the next person, but some things work consistently and some things consistently don’t work. Some risks in marketing are worth taking, some are worth testing and some are just bad.

There should be at least one person on your team, whether in-house or outsourced who says “that’s a bad idea,” once in awhile.

I’m not suggesting you have layers and layers of processes for a simple decision, but I don’t care how many millions you have, marketing is expensive, someone better be prioritizing and someone better be comfortable with “no.”

Find your “no” person. Not because they’ll throttle  you, but because they’ll let you splash at the right time.

5. How Expensive is “Cheap?”

I get it, you don’t want to spend any of your money on “shwag” but you need to. So you call your nephew or niece because they’ll do it cheap.

Unraveling “cheap” is one of the most time and energy consuming processes you can not pay for. I bet you’ve been there in other forms of development. Marketing is no different. Not only that, but you’ll find unraveling cheap costs a whole lot more than “done right the first time.”

So, next time someone wants to drop big bucks on shwag, you’ll be ready for them. AND you’ll be on your way to being ready for your splash.

 

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